ICRA maintains negative outlook on aviation sector

Indian carriers will continue to have a poor balance sheet in FY22 despite a likely year-on-year growth of 78% in domestic air passenger traffic and 164% growth in international traffic, ICRA said in a report.

“If a vaccine is launched earlier [before H2 CY2021] with reasonable availability, domestic air passenger traffic could witness a further upside in FY2022, with an estimated growth of 93%, and international air passenger traffic could witness an estimated growth of 235%,” ICRA said.

“With an improvement in passenger traffic in FY2022, ICRA expects the Indian aviation industry to report a y-o-y growth of 57% in revenues, with the industry’s net loss reducing to ₹146 billion from an estimated net loss of ₹210 billion in FY2021,” Kinjal Shah, vice-president, ICRA Ltd., said.

“The debt levels will remain high for the industry and are estimated to be range bound at around ₹500 billion [excluding lease liabilities] in FY2021 and FY2022, with the industry requiring an additional funding of ₹350-370 billion over FY2021 to FY2023,” she said.

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations

A select list of articles that match your interests and tastes.

Faster pages

Move smoothly between articles as our pages load instantly.


A one-stop-shop for seeing the latest updates, and managing your preferences.


We brief you on the latest and most important developments, three times a day.

Support Quality Journalism.

*Our Digital Subscription plans do not currently include the e-paper, crossword and print.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *